Energean Israel Inks Banking Deal to Finance Karish Field

Greece’s Energean Oil & Gas announced on March 5 that Energean Israel has signed a secured Senior Credit Facility of up to $1.275 billion with Morgan Stanley, Natixis, Bank Hapoalim, and Societe Generale as Mandated Lead Arrangers (MLAs).

According to Energean, the Facility Agreement will be the primary source of funding for the development of the Karish offshore gas field over the next three years, with first gas production expected in early 2021. It also provides further momentum for the Company to make a Final Investment Decision (FID) on Karish and Tanin.

"We are rapidly advancing the Karish and Tanin development by continually delivering on substantial project milestones,” Energean Oil & Gas CEO Mathios Rigas said.

"The participation of four international banks in the Facility Agreement is a strong vote of confidence in Energean’s flagship project. Long-term cash flow from Karish and Tanin has been secured through our previously signed gas supply agreements for approximately 4.2 bcm (billion cubic metres) per year with 12 established counterparties,” Rigas said, adding that Energean has also signed a $1.36 billion contract with TechnipFMC for the construction of an FPSO with a production capacity of 8 bcm per year, potentially enabling Energean to take advantage of future production potential from our existing licences or adjacent fields to deliver gas to a rapidly growing regional market.

Rigas said Energean is in the process of raising the equity required to develop Karish and Tanin through a premium listing on the London Stock Exchange’s Main Market.

"At the same time, we are pressing ahead with the expansion programme of our existing production and development base in the Eastern Mediterranean, to deliver our next phase of growth,” he said.